Impact of Inflation

Over Time, What Is the Long-Term Impact of Inflation?

According to the Bureau of Labor Statistics, inflation has averaged about 2.5 % over the past 10 years.

Over time, the effects of inflation can erode the value of your savings. At the end of an inflationary year, a dollar buys a little bit less than the year before. This calculator is designed to estimate the future cost of an item based on today’s prices and the rate of inflation you expect.

Your Results

The results below show the projected future cost based on the time frame you selected and the rate of inflation you expect over that period. How will you stay ahead of inflation? There are strategies you can implement to help your savings and investments keep pace with inflation over the long term.

The current cost of what you want to buy:

$0.00

How many years before you will buy this item:

0.00

Annual inflation rate that you want to assume:

0%

The future cost based on the information you entered:

$0.00

The graph below illustrates the incremental year-by-year increase in prices based
on the factors you input. Even at relatively low rates of inflation, the cost of
goods and services can rise dramatically over time. For example, assuming 4 percent
inflation, the value of $1 would be cut in half every 18 years. That means if you
are currently 30 years old, prices will have quadrupled by the time you reach retirement
age, assuming 4 percent annual inflation.

Impact of Inflation

This hypothetical example is used for illustrative purposes only. Actual results will vary.

The information in this calculator is not intended as tax or legal advice, and it
may not be relied on for the purpose of avoiding any federal tax penalties. You
are encouraged to seek tax or legal advice from an independent professional advisor.
The content is derived from sources believed to be accurate. Neither the information
presented nor any opinion expressed constitutes a solicitation for the purchase
or sale of any security.

Millington Financial Advisors, LLC only conducts business in states where it is registered or where an exemption from registration exists. This site and its contents do not constitute investment advice or a solicitation to sell securities. Past performance is not indicative of future results. This website is for informational purposes only, and Millington Financial Advisors, LLC reserves the right to modify it at any time without notice. Investors should carefully consider the investment objectives, risks, policies, charges and expenses of any investment product before investing. The prospectus, if available, contains this and other important information. Please read the prospectus carefully before you invest. To obtain a copy of the prospectus, please contact us Millington Financial Advisors, LLC at 222 S. Mill St., Naperville, IL 60540, (630) 922-7900.